You deserve an award-winning CFD service which can provide you with the tools you need to profit from trading the financial markets. Here are 10 reasons why you should be trading with us:
Who is CMC Markets?
CMC Markets was established in 1989 in London and is now a global leader in financial trading. The office in New Zealand was established in April 2006.
CMC Markets NZ Limited is a member of the NZ Financial Markets Association
The New Zealand Financial Markets Association represents the interests of its members in ensuring the sound management of the over-the-counter financial markets in New Zealand, which turned over approximately $10 trillion in 2006. The Association achieves this by promoting effective self-regulatory initiatives and by advocating, developing and implementing high professional standards to be used by its members when dealing in over-the-counter markets.
What is a CFD?
A CFD offers you all the benefits of trading Shares without having to physically own them. Simply put, it is a contract that mirrors the performance of a Share, Sector or Index. It is traded on margin, and just like physical Shares your profit or loss is determined by the difference between the price you buy at and the price you sell at.
How is CMC Markets regulated in NZ?
How safe in my money?
Very safe. We hold all funds in an on-shore client trust account with ANZ Bank.
Does the trading software cost anything?
No, If you have an account with CMC Markets you get free access to the award winning Marketmaker® software.
What 'other' costs are incurred?
Most CFD providers charge commission, but charges vary. Some providers charge a standard rate of commission while others add this cost into the instrument spread. Financing may be paid or received on positions held over night.
How does CMC Markets make its money?
CMC Markets makes its money via overnight financing (when taking long positions) and small commission charges on equity trades. CMC Markets does not profit based upon clients’ success in trades.
CMC Markets can provide such a cost effective service because of the large volumes transacted by clients worldwide.
What is margin?
Margin trading allows you to free up your capital by placing only a small percentage of the value of trade in your account. Profit and loss is credited and debited to your margin deposit as the market moves. Margins start from 3% for Share CFDs and 1% for Index, Sector, Treasury and Commodity CFDs.
Are my CFD profits subject to tax?
Tax is very dependant on individual circumstances and CMC Markets cannot provide individual tax advice.
However for general information, click here.
What happens if CMC Markets New Zealand ceases trading?
Client money is held in a segregated client trust account with ANZ bank in New Zealand and these funds are not available to CMC Markets creditors and cannot be used by CMC Markets to pay any debts. This means that even in unlikely event that CMC Markets should stop trading, because all clients funds are kept separate they will remain safe and clients will be able to get their funds returned to them.
CMC Markets New Zealand is a wholly owned subsidiary of CMC Markets plc, a large global financial company based in the UK. CMC Markets has a strong balance sheet and has no debt so is very unlikely to be in this situation.
Do you pay out on dividends & franking credits?
Yes, CMC Markets will pay the cash equivalent of the dividend into the trading account when clients hold a CFD position. However as no shares are ever held, no imputation credits (franking credits in Australia) will apply.
Do I have to have a computer?
No, CMC Markets has dealers that will be able to place trades for you over the telephone. CMC Markets also enables clients to trade using their mobile phones.
